Discussion in 'Wall St. News' started by Banjo, Jun 19, 2005.
To add insult to injury, the hedge funds charge 20% of the incentive plus 2% of management and yet only average 1-2% above the mutuals if looking at an average basis.
Well don't invest in a hedge fund that charges 20% management fees. Say what you want to say but Vanguard isn't half bad.
Bogle's reputation was built on low-cost index funds. Active fund managers hate index funds because there's not enough "vigorish" in index funds. For example, in 2004 the $101 billion Vanguard 500 Index Fund (VFINX: news, chart, profile) received almost $180 million in operating fees. Shareholders in the actively managed Fidelity Magellan (FMAGX: news, chart, profile) paid almost $400 million in expenses on $57 billion in assets. And yet Vanguard's 10.7% return beat Magellan's 7.5% in 20
Best bet is learn to manage your own money. It's not rocket science.
the hedge fund bubble will burst. darwin`s theoryÂ@âÂââ Â@evolution will prevail!
The fact of the matter is that even with charging the fees they still beat mutual funds, thats why they can charge the fees.
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